Brian Bolan Research
Equity Research
13 June 2011
DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED AT THE END OF THE REP...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2011 Brian Bolan Research | 1 773 413 0285 | www.scr...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC)
13 June 2010 Brian Bolan Research | 773 413 0285 | www.scrib...
Brian Bolan Research ReachLocal (Nasdaq Global Markets RLOC)
13 June 2011 Brian Bolan | 773 413 0285 | www.scribd.com 30
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  1. 1. Brian Bolan Research Equity Research 13 June 2011 DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED AT THE END OF THE REPORT. Investors should consider Brian Bolan Research as only a single factor in making their investment decision. Initiating Coverage Company Overview and Key Data ReachLocal (Nasdaq: RLOC) Hold Share Price: $16.30 Price Target: $18 52-Week Range: $12.00 - $28.39 Shares Outstanding: 28.8 million Market Capitalization: $507 million Dividend Yield: NA ReachLocal, Inc. is an online marketing company that helps small and medium sized businesses, or SMBs, acquire, maintain and retain customers via the Internet. The Company offers a comprehensive suite of online marketing and reporting solutions, including search engine marketing, display advertising, remarketing and online marketing analytics, each targeted to the SMB market. Brian Bolan Twitter: @BBolan1 1 773 413 0285 BBolan1@Gmail.com 13 June 2011 ReachLocal (Nasdaq: RLOC) Investment Concept ReachLocal has found a sweet spot by aggressively growing its Internet Marketing Consultants despite the recent recession. These feet on the street drive the company’s growth by acquiring small and medium sized business (SMB) clients and aiding them in advertising the client company via search and display advertising. Approximately one year ago, I initiated coverage on ReachLocal just a few days following the IPO. The published report contained my estimates for 2010 & 2011. This report looks back over the last year and how my estimates were able to hold up. Then we take a look at the future This report is only a preview of the complete report. Full edition reports are available for $79.95. Follow up reports following the earnings release will be priced at $29.99 and can be purchased in bulk. Email for payment options. . .  The full price version has over 20 graphs.  Includes earnings estimates for 2011, 2012.  Includes one free hour of consultation with author
  2. 2. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2011 Brian Bolan Research | 1 773 413 0285 | www.scribd.com 2 Inside Investment Thesis 3 Company Background 3 ReachSearch 4 ReachDisplay 5 TotalTrack 6 TotalChat 6 ReachCast 6 ReachDeals 7 Acquisitions 8 Where the Growth Comes From 8 Segment Breakdown 9 Comparable Companies 9 Industry Discussion 11 Management 11 Headcount 11 Stock Trading 12 Traffic Analysis 13 Income Statement 14 Active Advertisers 14 Active Campaigns 15 Sales Staff Grows 15 Campaign ASP 16 Advertiser ASP 16 Revenue per IMC 17 Direct Local vs NBAR 18 Analysis of Key Metrics 18 Cost of Sales to Decrease 19 Balance Sheet 19 Investment Risks 20 Recomendation 20 Appendices 22
  3. 3. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 3 Investment Thesis ReachLocal has demonstrated a clear path to profitability, good growth history and good growth potential. A tight float and little selling from Venture Capital has played a role in the stock moving to its recent highs. The recent partnership with Google has cleared the way for future investment in eight foreign countries over the next three years. Over the last year, the company has added a key product, ReachCast, to its search and display offerings. ReachCast is the social media marketing tool that includes Facebook, Twitter, and SEO services for the site. Through 1Q11 the company has sold approximately 1,100 ReachCast’s to new and existing clients. Having launched in November, the retention rates for ReachCast will be a primary concern. Growth is predicated on the continued hiring of Internet Marketing Consultants (IMC’s) As the company adds more IMC’s the distance to profitability is likely to be shortened. We have used some conservative hiring estimates for 20112 and relied on company guidance for 2011. Company Background Search remains the backbone of the internet and small businesses realize that they need to be on the internet. Most small businesses recognize that they can be on the internet with little effort directly through Google AdWords, but add in the complexity of Yahoo!, Bing, Ask.com and AOL and the task becomes too large for many small businesses. The company generates revenue from four segments. We have provided a brief summary of each below: ReachSearch is the company’s search engine marketing product places clients’ advertisements among the search results on leading search engines such as Google, Yahoo! and Bing, as well as an extensive network of local search and directory sites, called the ReachLocal Search Network. ReachDisplay is the company’s display advertising product which broadcasts an SMB’s message to a specific target online audience. ReachLocal offers more than 20 different display advertising products across a wide variety of publishing partners, including Yahoo!/Right Media, Google, Collective Media, Facebook, Fox Interactive Media, and Kelley Blue Book. In 1Q11 RLOC added Remarketing to all ReachDisplay campaigns. Remarketing a remarketing product allows the company to target consumers who have previously visited a specific SMB’s website through a ReachSearch or ReachDisplay campaign. TotalTrack. Powered by a reverse proxy technology TotalTrack allows clients to see exactly how much online and offline activity, including phone calls, is generated by their online advertising campaigns. ReachCast. As the Social Media Marketing tool for small businesses, ReachCast posts content to Facebook & Twitter and allows for an RSS feed to post to other blogs or sites. Through SEO back linking, the ReachCast site will often climb the organic listings for three or five desired keywords. ReachDeals The result of the $10M purchase of DealOn on 2/15/11, ReachDeals has yet to be launched and is still in beta. It is expected to fully launch in 2H11. As part of the Bizzy platform, ReachDeals will compete with Groupon, LivingSocial and others in the daily deal space. A detailed breakdown of each product is available via the full report.
  4. 4. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 4 ReachSearch (Detailed Breakout) Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1). Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Pros  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Cons  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1
  5. 5. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 5 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. .  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Analysis Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . ReachDisplay Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Analysis
  6. 6. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 6 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. s. TotalTrack Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Analysis Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. TotalChat - the chat Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Analysis Chat Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. n. ReachCast Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Contract lengths are 6 and 12 months. Pros  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 ve.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.
  7. 7. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 7  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Cons  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Analysis Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. ReachDeals Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Pros  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Cons  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1
  8. 8. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 8 Analysis Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Acquisitions Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Where the growth will come from Ad dollars shifting from other sources to Online Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1
  9. 9. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 9 Segment Breakout Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Comparable Companies Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Local.com (NASDAQ: LCOM) - Local.com Corporation operates an Internet search engine. The Company assists users in finding local businesses and services. Marchex (NASDAQ: MCHX) - Marchex, Inc. provides technology-based services to merchants engaged in online transactions. The company's Internet marketing services, including paid inclusion, pay-per-click listings, conversion tracking and search marketing, help merchant customers sell their products and services online. Verto (NASDAQ: VTRO) – Vertro, Inc. owns a portfolio of products that allow users to search the Internet and display the results as they wish. The products allow users to search and then display the results in customizable toolbars, homepages, and desktop products. Constant Contact (NASDAQ: CTCT) – Constant Contact, Inc. provides web-based e-mail marketing tools and services to businesses, associations, and organizations to help them connect with their customers and members. Limelight Networks (NASDAQ: LLNW) Limelight Networks Inc. is a content delivery network for internet distribution of video, music, games and downloads. The company's advanced content delivery network provides the world's top media companies high performance delivery of digital media and software via the Internet.
  10. 10. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 10 ValueClick (NASDAQ: VCLK) ValueClick, Inc. provides Internet advertising solutions for publishers of Web sites and online advertisers. The Company offers performance-based Internet advertising solutions in which an advertiser only pays when an Internet user clicks on its banner advertisement. QuinStreet (NASDAQ: QNST) QuinStreet, Inc. provides Internet advertising solutions for publishers of Web sites and online advertisers. The company focuses on building lead aggregation websites for specific industry verticals.
  11. 11. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 11 Industry Discussion Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. . Management Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Zorik Gordon Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Michael Kline Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Ross G. Landsbaum Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Head Count / Underclassmen and Upperclassmen. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1
  12. 12. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 12 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Stock Trading IPO Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Major Shareholders Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1
  13. 13. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 13 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 7. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Traffic Analysis Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 1 2 3 4 5 6 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Chart OMITTED in FREE Version 1 2 3 4 5 6 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Chart OMITTED in FREE Version
  14. 14. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 14 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Income Statement Without having had a significant discussion with management on how to think about modelling the company out, we adopted a use everything approach to come to our estimates Our estimates are based on a number of moveable parts in the ReachLocal model, including but not limited to: 1) number of campaigns 2) number of advertisers 3) number of sales people 4) campaign ASP’s 5) advertiser ASP’s and 6) revenue per sales person 7) Direct Local sales 8) National Brands, Agencies and Resellers. A detailed breakdown of all the metrics is available in the full report. Active Advertisers Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 portion of international expansion.
  15. 15. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 15 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Active Campaigns Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 are far less likely to result in churn. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Sales Staff Grows Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1
  16. 16. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 16 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Campaign ASP’s Over Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. In Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 t increases.
  17. 17. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 17 Advertiser ASP An Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 ASP’s. The Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 experiencing. When Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 quarters. Revenue per IMC
  18. 18. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 18 As Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 numbers. As Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 picture. The Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 areas. Direct Local vs NBAR The Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 resellers.
  19. 19. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 19 Analysis of key metrics for ReachLocal The Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 clients. On Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 international office expansions since that time. Cost of Sales to Decrease as a percentage of Sales Nearly Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Google. Costs Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 customer. There Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 clients. Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Balance Sheet Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Short Interest At the end of 1Q11 short interest stood at more than 2.1M shares, or about 7.6% of the shares outstanding. Since that time, short interest has increased to 2.5M shares outstanding or about 9.1% of the total. Paragraph1 Paragraph1 Paragraph1 Paragraph1
  20. 20. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 20 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Investment Risks If the company experiences any or all of the following risk factors, as well as others, the company’s stock price may be affected.  Advertisers Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  A better Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Competition Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  Future Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1  Loss Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.  One Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1. Implications of higher employee turnover / increases in commissions. Earlier in Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1
  21. 21. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 21 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 on margins. Recommendation and Valuation Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1 Paragraph1.
  22. 22. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 22 Appendix 2Q10 Earnings Review 3Q10 Earnings Review
  23. 23. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 23 4Q10 Earnings Review 1Q11 Earnings Review
  24. 24. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 24 ReachLocal Income Statement Forecast
  25. 25. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 25
  26. 26. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 26 1 2 3 4 5 6 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Chart OMITTED in FREE Version
  27. 27. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 27 Balance Sheet
  28. 28. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 28 Statement of Cash Flow
  29. 29. Brian Bolan Research ReachLocal (Nasdaq Global Markets: RLOC) 13 June 2010 Brian Bolan Research | 773 413 0285 | www.scribd.com 29 ReachLocal (Nasdaq GM: RLOC) Historical Price Chart Source Google
  30. 30. Brian Bolan Research ReachLocal (Nasdaq Global Markets RLOC) 13 June 2011 Brian Bolan | 773 413 0285 | www.scribd.com 30 Important disclosures: Analyst Certification: The following analysts hereby certify that their views about the companies and securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Brian Bolan. As of the date of this report, the analyst has no financial interest in any companies mentioned in this report. Ratings: Buy: The stock’s total return is expected to exceed 15% over the next 6-12 months. Hold: The stock is expected to have a positive return of less than 15% over the next 6-12 months. Sell: The stock is expected to have a negative return over the next 6-12 months. Disclosures: None

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